Buying new premises

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Buying new premises by Mind Map: Buying new premises

1. [Advising the business](https://library.croneri.co.uk/po-heading-id_4WXXSOH7bECxabuOUPomWw)

1.1. Tax relief?

1.2. Buy or lease?

1.3. Purchaser?

2. [Lease](https://library.croneri.co.uk/po-heading-id_Mo8R5FuVHkmVsAa3VIfaAw)

2.1. Rent

2.1.1. Wholly and exclusively

2.2. Premium

2.2.1. 50 years +

2.2.2. Relief for income element

3. [VAT](https://library.croneri.co.uk/po-heading-id_oQgbdtrOCkuBqzygpJ7a7A)

3.1. [Exempt](https://library.croneri.co.uk/bvr/27-exemp-1)

3.2. [Standard-rated](https://library.croneri.co.uk/cch_uk/bvr/34-landcp-8)

3.2.1. [Opt to tax](https://library.croneri.co.uk/cch_uk/bvr/34-landcp-9)

3.2.2. [New](https://library.croneri.co.uk/cch_uk/bvr/34-610)

3.2.2.1. 3 years

3.3. Lease

3.3.1. [Exempt unless opted to tax](https://library.croneri.co.uk/cch_uk/bvr/34-632)

3.3.2. [Treatment of deposits: refundable, or advance payment?](https://library.croneri.co.uk/cch_uk/bvr/34-640)

4. [Transaction tax](https://library.croneri.co.uk/po-heading-id_JYEQM4d-rkysi7uCGZLZCQ)

4.1. SDLT / LBTT / LTT: > £150K

4.1.1. [LBTT (Scotland)](https://library.croneri.co.uk/cch_uk/lbtt/200-000)

4.1.1.1. [Rates](https://library.croneri.co.uk/cch_uk/trto/15-000)

4.1.2. [LTT (Wales)](https://library.croneri.co.uk/cch_uk/ltt/300-000)

4.1.2.1. [Rates](https://library.croneri.co.uk/cch_uk/trto/15-500)

4.1.3. [SDLT (UK except Scotland and Wales)](https://library.croneri.co.uk/cch_uk/sdlt/10-000)

4.1.3.1. [Rates](https://library.croneri.co.uk/cch_uk/sdlt/10-410)

4.2. Leased buildings

4.2.1. [Scotland](https://library.croneri.co.uk/cch_uk/lbtt/208-000)

4.2.1.1. [Rates](https://library.croneri.co.uk/cch_uk/trto/15-000)

4.2.2. [Wales](https://library.croneri.co.uk/cch_uk/ltt/308-000)

4.2.2.1. [Rates](https://library.croneri.co.uk/cch_uk/trto/15-500)

4.2.3. [UK except Scotland and Wales](https://library.croneri.co.uk/cch_uk/sdlt/60-000)

4.2.3.1. [Rates](https://library.croneri.co.uk/cch_uk/sdlt/10-410)

5. [Buy](https://library.croneri.co.uk/po-heading-id_M69NxLmytkO9xXWEMhR6OA)

5.1. Capital costs

5.1.1. Relief against gain on eventual disposal

5.1.2. Structures and buildings allowance

5.1.3. Capital allowances for fixtures

6. [Fixtures](https://library.croneri.co.uk/po-heading-id_PFTFctmcU0Sidg5-TUeh_Q)

6.1. Agreed value

6.1.1. Fixed value requirement

6.1.1.1. 2yrs

6.1.2. Pooling requirement

6.2. 6% special rate

6.3. 100% AIA

6.3.1. Max. £1m pa

6.3.2. Corporation tax and income tax

6.4. FYAs

6.4.1. Pre-1 April 2023 (no longer available)

6.4.1.1. 50% FYA for special rate P&M

6.4.1.2. 130% super-deduction for main rate P&M

6.4.2. Corporation tax only

6.4.3. 1 April 2023 onwards

6.4.3.1. 100% FYA for main rate P&M (full-expensing)

6.4.3.2. 50% FYA for special rate P&M

6.4.3.3. Now permanent (31 March 2026 end-date removed)

7. [Structures and buildings allowance](https://library.croneri.co.uk/po-heading-id_wzed0Bb8w0K6JOEqEMg5eA)

7.1. Building costs

7.1.1. Not land

7.1.2. Not fixtures

7.2. 3% pa

7.2.1. Straight line

7.2.2. Accelerated relief in some cases

7.3. No balancing adjustment

7.3.1. Increase gain / reduce loss

7.4. Create/maintain allowance statement